Mainland markets dropped 1.6 percent, the most in five weeks, after China State Construction Engineering Corp (CSCEC), the world's largest initial public offering so far this year, started taking subscriptions. Hong Kong's Hang Seng Index closed almost unchanged despite earlier drops.
Brokerage shares rose on the resumption of domestic IPOs rose, this year's strong stock market rally and news of the imminent launch of The Shenzhen Stock Exchange's new Growth Enterprise Board. Shenyin Wanguo (Hong Kong) Ltd. (HK:0218) rose 2 percent. Northeast Securities Co., Ltd. (SZ:000686) rose 4 percent. Guoyuan Securities Company Ltd. (SZ:000728) rose 2.4 percent.
The Shenzhen Growth Enterprise board will be ready to accept IPO applications on Monday. The Securities Times said an estimated 50 to 100 Chinese firms would be applying. Listed companies with equity in venture capital trusts rose. TONTEC Tecnology Inv. Gr Co., Ltd (SH:600862) gained 4.9 percent. Ningbo Shanshan Co., Ltd (SH:600884) rose 3.8 percent. Shanghai DaZhong Public Utilities (SH:600635) rose 3.3 percent. Leaguer Stock Co., Ltd. (SZ:000532) rose 2.3 percent.
Insurers advance as the China Insurance Regulatory Commission said China's insurers may post a 98 percent increase in first- half profit to RMB26.1bn, due to higher investment income and lower funding costs. Ping An (SH:601318, HK:2318) rose 1.8 percent on Shanghai and 1 percent on Hong Kong. China Life Insurance (HK:2628, SH:601628) rose 1.8 percent on Hong Kong. Boths stocks hit fresh 14-month highs earlier in the session. Non-life insurer PICC P&C (HK:2328) gained 3.7 percent.
China Mobile (HK:0941, NYSE:CHL), the world's largest mobile phone service provider by customer numbers, dropped 1.6 percent as the company added fewer new users in June, prompting for profit-taking after this week's recent rally. China Mobile's net subscriber additions in June dropped slightly to 5.01 million from 5.11 million in May.
Metal and coal shares were also hit by profit-taking, with Chinalco (HK:2600, NYSE:ACH), China's biggest aluminium producer, losing 2.35 percent and China Shenhua Energy (HK:1088), its largest coal producer, fell 2.76 percent.
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